Citigroup (Citi) has signed an agreement to sell its Turkish consumer banking business to DenizBank, part of Sberbank group.
Under the agreement, DenizBank will take over TL 1.2bn ($650m) in gross assets, over TL 1.5bn ($800m) of deposits and 600,000 customers, 22 branches in Turkey and 1,700 Citi employees.
After suffering a 32% fall in net income for the 12 months of 2012 the Citigroup the banking group also announced 11,000 job cuts around the world; this figure amounts to 4% of their work force and $1.1bn in savings.
Sberbank however are expanding. Sberbank, the largest bank in Russia by assets completed their acquisition of DenizBank in September 2012 which is Turkey’s 9th biggest bank by assets.
It has been reported that Serra Akcaoglu, chief executive, Citi said of the sale: "Citi has taken a strategic decision to focus on its corporate and commercial banking businesses in Turkey. With our commitment to the country, we will continue to grow these businesses."
The purchase of Citi’s Turkish consumer banks is expected to be complete in the third quarter of 2013, subject to customary and regulatory approvals.